A. A. Volkov. Influence of Socio-Economic Factors on the Development of the Home Mortgage Lending Market: The Case of the Vologda Region

UDК 336.7(470.12)

DOI: https://doi.org/10.15507/2413-1407.114.029.202101.037-059

Introduction. Mortgage lending plays an important role both for the banking system and for the country’s economy as a whole. In addition to the main function of providing people with comfortable housing, mortgage system development stimulates various areas of the country's economy and creates conditions conducive for investment. The purpose of the paper is to single out the factors that have a negative impact on the home mortgage lending market on the basis of the case study of the Vologda Region.

Materials and methods. The study was carried out on the basis of the statistical database of the Central Bank of the Russian Federation, data from an integrated housing development institution DOM.RF and the territorial body of the Federal State Statistics Service in the Vologda Region, as well as the Numbeo database ratings. Methods of comparison and observation, analysis and synthesis were used to study the statistics of the main indicators of the home mortgage lending market.

Results. The main factors influencing the home mortgage lending market have been identified: high loan interest rates, low wages (insolvency of the client), an increase in overdue debts, high prices in the housing market, etc. The author has put forward recommendations for the development of the home mortgage lending market.

Discussion and Сonclusion. The study has shown that the mortgage market in the Vologda Region has considerable growth potential and that credit institutions should work more carefully with clients, which will help to reduce overdue debts. The research materials may be useful to researchers exploring the economic issue under consideration, as well as to commercial banks, regional and local authorities that can contribute to the development of mortgage lending.

Keywords: commercial banks, mortgage lending, mortgage, primary housing market, secondary housing market, interest rate

Funding. The article was done in pursuance of the state task for the Vologda Research Center of the Russian Academy of Sciences as part of the research work No. 0168-2019-0005 “Research on Factors and Methods of Sustainable Development of Territorial Systems in Changing Geopolitical and Geoeconomic Circumstances”.

The author states that there is no conflict of interest.

For citation: Volkov A.A. Influence of Socio-Economic Factors on the Development of the Home Mortgage Lending Market: The Case of the Vologda Region. Regionology = Russian Journal of Regional Studies. 2021; 29(1):37-59. DOI: https://doi.org/10.15507/2413-1407.114.029.202101.037-059

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Submitted 10.07.2020; approved after reviewing 09.09.2020; accepted for publication 18.09.2020.

About the author:

Anatoly A. Volkov, Postgraduate, Research Engineer, Department of Socio-Economic Development and Administration in Territorial Systems, Vologda Research Center of the Russian Academy of Sciences (56a Gorkogo St., Vologda 160014, Russian Federation), ORCID: https://orcid.org/0000-0003-4314-2140, aa.volkov95@mail.ru

The author has read and approved the final version of the manuscript
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